New Member in Shasta County, Redding area of CA.
Member since 2023 · 14 posts · 13 votes
New Member in Shasta County, Redding area of CA.
Most Popular Reply
Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
2yQuote from @Cecil Shannon:
Hello BP! I'm located in Shasta County CA and have been engulfed by the BP audiobooks, podcast and such! I don't have any investments yet mostly because my wife and I just got married and bought our primary residence. Wishing I had bought a duplex or really any piece of property straight out of high school for a jump start but here I stand.
I have had a hard time getting started and am anxious to get my first deal. I'm thinking of a BRRRR deal but having just bought the primary, probably wont be able to go with conventional financing anytime soon but maybe!
We have a decent amount saved up and have thought about doing a out of state deal but might be good to do a deal near me to start out.
What do you all think? Think I should just wait it out or dive straight in? Any advise of what a beginner should do?
Hey Cecil, if you're anxious about getting started, I would likely recommend starting off with something more turn-key and then doing a BRRRR for your second deal once you establish your systems and get a good team in place.
29 Replies
Hey Cecil, welcome to BiggerPockets! You’re in the right place to learn about real estate investing. If you want to start out-of-state, as someone who started off in Columbus, and grew up in Cleveland, I would say, the Ohio market in general is a very beginner friendly state to get started with your real estate journey. I have seen so much growth in Columbus when it comes to appreciation and job opportunities which I have experienced. On average, 80 people move into Columbus weekly. On the other hand, if you have a lower budget, let’s say $100-$150k. Cleveland would be a great market for you. I have experienced cash flow anywhere from 10-18% with so much more to offer. As a real estate agent and an investor, I am on the market daily and explore opportunities for myself and my clients. Let me know how I can help!
- 2yMike PaolucciBusiness MemberRealtor · Columbus Cleveland Dayton, OH · Member since 2022 · 504 posts · 556 votes
Hey @Cecil Shannon
I'm originally from San Francisco, CA and started investing in 2021. I chose not to invest in CA because the numbers and landlord laws just didn't make sense. Here's an example of the landlord laws I'm referring to ("Justice for Renters Act" - this is coming up on CA's November ballot).
I ended up starting off with an OOS investment here in Ohio because both the numbers & landlord laws made sense out here and I haven't been disappointed with my decision to do so. As the years have progressed, I've seen a healthy combo of appreciation & cashflow has continued to increase as market rents have gone up.
To start off, I'd attend some local meet ups and network a bit, and start analyzing some deals. Once you feel comfortable in running your numbers, figure out a good market that has good population & economic growth and landlord friendly laws. Once you've found your target market, start developing your teams (Investor focused agent, Investor friendly lender, Property manager & contractor). Last but not lease, start writing offers and don't get stuck in analysis paralysis.
Let me know if you have any questions about OOS investing. Happy to answer any questions you might have.
Reafco - Mike Paolucci 512 Reviews - 2yPatrick DruryBusiness MemberReal Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
@Cecil Shannon
If you can invest locally I would do that, but if the numbers don't make sense and the price points exceed what is doable for you then I would look out of state in another market where you can achieve what you are looking for. I would start by checking out the Ohio markets in the mid-west if investing out of state is the route you take. - 2yBonnie LowPro MemberLender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
Hi, Cecil - we're in Shasta County, too, and have properties in Redding and Shasta Lake. As you know, this part of CA is nothing like what most people associate CA with. There are still a lot of opportunities for BRRRRs so I'd encourage you to keep your eyes open. I have a wholesaler I trust who I can put you in touch with if you'd like. You don't need a conventional bank to buy a property. You might consider hard money for the initial purchase or going with a DSCR type lender if you find something that is more turnkey.
- Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes2y
Hey Cecil, if you have the capital to operate locally, and it fits your goals to do so, I highly recommend doing that.
Congrats on securing your primary though. You're always going to wish you started earlier, so it's best to start today!
- 2ySamuel DioufBusiness MemberReal Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
You would probably need to use DSCR financing but i'd say it's better to start now then later. Your first investment will be a huge learning experience. I know a lot of investors from California are investing OOS in Ohio. The Ohio market is one of the top markets to invest in from a distance.
Reafco - Samuel Diouf528 Reviews - 2yJulio GonzalezPro MemberSpecialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
Welcome to BiggerPockets, Cecil!
Considering a BRRRR deal sounds like a good idea, especially since you just bought your home. Whether you start with a local deal or try investing out of state, the key is to do your research and take action.
Best of luck,
Julio - Investor · Redding CA · Member since 2019 · 55 posts · 24 votes2y
Hi Cecil- We are also in Shasta County. We invest locally and enjoy being involved in the projects. A lot of conversations between you and your partner need to happen before you take the leap into investing. Along with some serious conversations with yourself. How involved do you want to be? What are you looking for equity or cashflow? Are you holding or flipping? and so much more.
I saw a post not long ago about a meet up in Shasta County not sure if they will be doing more but its a good place to start.
- Member since 2023 · 14 posts · 13 votes2y
- Member since 2023 · 14 posts · 13 votes2y
Quote from @Min Zhang:
Hey Cecil, welcome to BiggerPockets! You’re in the right place to learn about real estate investing. If you want to start out-of-state, as someone who started off in Columbus, and grew up in Cleveland, I would say, the Ohio market in general is a very beginner friendly state to get started with your real estate journey. I have seen so much growth in Columbus when it comes to appreciation and job opportunities which I have experienced. On average, 80 people move into Columbus weekly. On the other hand, if you have a lower budget, let’s say $100-$150k. Cleveland would be a great market for you. I have experienced cash flow anywhere from 10-18% with so much more to offer. As a real estate agent and an investor, I am on the market daily and explore opportunities for myself and my clients. Let me know how I can help!
Thanks! Ohio definitely seems like a good place to look if I’m going for OOS deals. I should begin analyzing and get used to the numbers.
- Member since 2023 · 14 posts · 13 votes2yYeah the landlord laws in CA seem pretty harsh which would be a big factor why I would go with out of state. Like stated in later in this forum things are not quite as harsh as down south but you still have “California” to deal with lol.
Quote from @Mike Paolucci:
Hey @Cecil Shannon
I'm originally from San Francisco, CA and started investing in 2021. I chose not to invest in CA because the numbers and landlord laws just didn't make sense. Here's an example of the landlord laws I'm referring to ("Justice for Renters Act" - this is coming up on CA's November ballot).
I ended up starting off with an OOS investment here in Ohio because both the numbers & landlord laws made sense out here and I haven't been disappointed with my decision to do so. As the years have progressed, I've seen a healthy combo of appreciation & cashflow has continued to increase as market rents have gone up.
To start off, I'd attend some local meet ups and network a bit, and start analyzing some deals. Once you feel comfortable in running your numbers, figure out a good market that has good population & economic growth and landlord friendly laws. Once you've found your target market, start developing your teams (Investor focused agent, Investor friendly lender, Property manager & contractor). Last but not lease, start writing offers and don't get stuck in analysis paralysis.
Let me know if you have any questions about OOS investing. Happy to answer any questions you might have.
I will look into Ohio and start analyzing properties locally/OOS and see if I can find decent deals in Ohio. I havnt done much analysis but need to spend more time doing it. - Member since 2023 · 14 posts · 13 votes2yThanks! Yeah I really need to just begin analyzing and see what works best for me. I should explore my financing options too and see what’s best.
Quote from @Patrick Drury:
@Cecil Shannon
If you can invest locally I would do that, but if the numbers don't make sense and the price points exceed what is doable for you then I would look out of state in another market where you can achieve what you are looking for. I would start by checking out the Ohio markets in the mid-west if investing out of state is the route you take.
Ohio seems like a great market and I’ll look into it. Thanks! - Member since 2023 · 14 posts · 13 votes2yHey! Thanks for responding. We live up in Shasta lake. Is Shasta lake a decent place for rentals? Long term? Yeah I’d be more comfortable investing locally but I’m going to begin analyzing deals.
Quote from @Bonnie Low:
Hi, Cecil - we're in Shasta County, too, and have properties in Redding and Shasta Lake. As you know, this part of CA is nothing like what most people associate CA with. There are still a lot of opportunities for BRRRRs so I'd encourage you to keep your eyes open. I have a wholesaler I trust who I can put you in touch with if you'd like. You don't need a conventional bank to buy a property. You might consider hard money for the initial purchase or going with a DSCR type lender if you find something that is more turnkey.
A brrrr deal would be perfect for me. So I’ll have to watch for some properties!
I need to do some research and find out what a DSCR lender is and how they work.
A wholesaler would be great to get in touch with!
Thanks! I have tons to learn and am anxious. I’m sure I can count on you all to hold me accountable!😆 - 2yBonnie LowPro MemberLender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
Quote from @Cecil Shannon:
Hey! Thanks for responding. We live up in Shasta lake. Is Shasta lake a decent place for rentals? Long term? Yeah I’d be more comfortable investing locally but I’m going to begin analyzing deals.Quote from @Bonnie Low:
Hi, Cecil - we're in Shasta County, too, and have properties in Redding and Shasta Lake. As you know, this part of CA is nothing like what most people associate CA with. There are still a lot of opportunities for BRRRRs so I'd encourage you to keep your eyes open. I have a wholesaler I trust who I can put you in touch with if you'd like. You don't need a conventional bank to buy a property. You might consider hard money for the initial purchase or going with a DSCR type lender if you find something that is more turnkey.
A brrrr deal would be perfect for me. So I’ll have to watch for some properties!
I need to do some research and find out what a DSCR lender is and how they work.
A wholesaler would be great to get in touch with!
Thanks! I have tons to learn and am anxious. I’m sure I can count on you all to hold me accountable!😆Shasta Lake has been a good place for rentals. The City has done a lot of work to clean itself up in recent years so you will find not only a lot of rehabbed houses, but businesses and store front rehabs, too. It's slightly less expensive than Redding but a very short commute so it's a great place for starter homes, too.
- Member since 2023 · 14 posts · 13 votes2yThanks! Yeah we are still trying to save and sacrifice so we have capital mostly for peace of mind but also to get out of a hole if need be.
Quote from @Travis Biziorek:
Hey Cecil, if you have the capital to operate locally, and it fits your goals to do so, I highly recommend doing that.
Congrats on securing your primary though. You're always going to wish you started earlier, so it's best to start today!
- Member since 2023 · 14 posts · 13 votes2yThanks! I will looks into DSCR financing. Do you guys have any books or learning ideas on how to learn about DSCR?
Quote from @Samuel Diouf:
You would probably need to use DSCR financing but i'd say it's better to start now then later. Your first investment will be a huge learning experience. I know a lot of investors from California are investing OOS in Ohio. The Ohio market is one of the top markets to invest in from a distance.
- Member since 2023 · 14 posts · 13 votes2yYeah for sure. I have been rolling those kind of questions around in my mind and with my wife and I think I’d like to go as deep as possible but I have a lot to learn!
Quote from @Cara Murray:
Hi Cecil- We are also in Shasta County. We invest locally and enjoy being involved in the projects. A lot of conversations between you and your partner need to happen before you take the leap into investing. Along with some serious conversations with yourself. How involved do you want to be? What are you looking for equity or cashflow? Are you holding or flipping? and so much more.
I saw a post not long ago about a meet up in Shasta County not sure if they will be doing more but it’s a good place to start.
there is a proper in Shasta lake that we might look into to getting as a BRRRR but I need to do some more analysis on it.
I’m glad you local people replied! It’s great to hear some about the local market and area. - 2yManny VasquezBusiness MemberReal Estate Agent · Orange County · Member since 2022 · 320 posts · 293 votes
Cecil- I believe California does have some great opportunities. However, these properties won't be low hanging fruit. You will have to do a little more research, dig a little deeper and turn a few more stones. You may also have to get your "hands dirty" in order to make these properties cash flow. Just last year I expanded my property portfolio in California which now includes Orange, Los Angeles, Riverside and Kern counties. Depending on where the property is situated and the "local market conditions" I have them rented out as either long term, mid-term or short term. Some cash flow more than others, but they all cash flow pretty well. I don't agree with all of the local laws and politics in California, but its still a great place to invest. Property appreciation is second to none and rents always go up here. You get the best of both worlds.
Since you mentioned that you are getting started, I highly suggest you house-hack (this is how I got started in Costa Mesa, Orange County). I did this for a few years and then I started to scale. If I did it, and I'm no one special, anyone can do it. You'll have to make some sacrifices, put in some work but I promise that its all worth it in the end.
Becareful with BRRRR-ing out of state. If you plan to be there for the entire rehab process, then go for it. But if you plan to travel back and forth, just make sure you that the people you have working on your property are highly reputable and trustworthy. Establish some "safeguards" to keep them honest and consistently check their work. I had a project bte me in the butt because I wasn't more diligent in "checking in" on the contractor.
I hope this helps and good luck in your journey!
- Member since 2023 · 14 posts · 13 votes2y
Quote from @Bonnie Low:
Quote from @Cecil Shannon:
Hey! Thanks for responding. We live up in Shasta lake. Is Shasta lake a decent place for rentals? Long term? Yeah I’d be more comfortable investing locally but I’m going to begin analyzing deals.Quote from @Bonnie Low:
Hi, Cecil - we're in Shasta County, too, and have properties in Redding and Shasta Lake. As you know, this part of CA is nothing like what most people associate CA with. There are still a lot of opportunities for BRRRRs so I'd encourage you to keep your eyes open. I have a wholesaler I trust who I can put you in touch with if you'd like. You don't need a conventional bank to buy a property. You might consider hard money for the initial purchase or going with a DSCR type lender if you find something that is more turnkey.
A brrrr deal would be perfect for me. So I’ll have to watch for some properties!
I need to do some research and find out what a DSCR lender is and how they work.
A wholesaler would be great to get in touch with!
Thanks! I have tons to learn and am anxious. I’m sure I can count on you all to hold me accountable!😆Shasta Lake has been a good place for rentals. The City has done a lot of work to clean itself up in recent years so you will find not only a lot of rehabbed houses, but businesses and store front rehabs, too. It's slightly less expensive than Redding but a very short commute so it's a great place for starter homes, too.
There is a property in Shasta lake that has some potential. I am going to run some numbers tonight and see though.Yeah they have done a super good job up here and the local projects might make the prices go up some but it seems like a decent place for some long term rentals.
- Member since 2023 · 14 posts · 13 votes2yYeah thanks! I definitely don’t mind getting my hands dirty at least getting started in real estate. I will probably do lots of rehab myself because of my background and then scale up as I am more able to afford qualified contractors. If I can gain some sweat equity it might help my portfolio take off a little better but we’ll see.
Quote from @Manny Vasquez:
Cecil- I believe California does have some great opportunities. However, these properties won't be low hanging fruit. You will have to do a little more research, dig a little deeper and turn a few more stones. You may also have to get your "hands dirty" in order to make these properties cash flow. Just last year I expanded my property portfolio in California which now includes Orange, Los Angeles, Riverside and Kern counties. Depending on where the property is situated and the "local market conditions" I have them rented out as either long term, mid-term or short term. Some cash flow more than others, but they all cash flow pretty well. I don't agree with all of the local laws and politics in California, but its still a great place to invest. Property appreciation is second to none and rents always go up here. You get the best of both worlds.
Since you mentioned that you are getting started, I highly suggest you house-hack (this is how I got started in Costa Mesa, Orange County). I did this for a few years and then I started to scale. If I did it, and I'm no one special, anyone can do it. You'll have to make some sacrifices, put in some work but I promise that its all worth it in the end.
Becareful with BRRRR-ing out of state. If you plan to be there for the entire rehab process, then go for it. But if you plan to travel back and forth, just make sure you that the people you have working on your property are highly reputable and trustworthy. Establish some "safeguards" to keep them honest and consistently check their work. I had a project bte me in the butt because I wasn't more diligent in "checking in" on the contractor.
I hope this helps and good luck in your journey!
I would love to do a house hacking deal. Our house had a garage but was walled up and made into just a storage room and I would like to make it into a little studio and sort of house hack. Other than that there isn’t much chance of doing a house hack where my wife and I currently are. (you gotta get the wife on board first😁)
I probably won’t do an OOS BRRRR yet but maybe something that the repairs are not as extensive if I can find a deal with working numbers.
Tanks for the response. - Real Estate Agent · Member since 2023 · 831 posts · 577 votes2y
Hey Cecil, I would look into Cleveland if you're checking out other markets. It's a great opportunity for BRRRR. The cost of entry is low, and cash flow is high.
You can find distressed off-market duplexes under 120k and SFH under 80k in B to C-class areas. I recommend working with an investor-friendly agent to help you figure out the market before analyzing any deals. - 2yRemington LymanBusiness MemberReal Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
Quote from @Cecil Shannon:
Hello BP! I'm located in Shasta County CA and have been engulfed by the BP audiobooks, podcast and such! I don't have any investments yet mostly because my wife and I just got married and bought our primary residence. Wishing I had bought a duplex or really any piece of property straight out of high school for a jump start but here I stand.
I have had a hard time getting started and am anxious to get my first deal. I'm thinking of a BRRRR deal but having just bought the primary, probably wont be able to go with conventional financing anytime soon but maybe!
We have a decent amount saved up and have thought about doing a out of state deal but might be good to do a deal near me to start out.What do you all think? Think I should just wait it out or dive straight in? Any advise of what a beginner should do?
Welcome to BP! I would dive straight in. I started investing in 2017 in Ohio and I am happy I did not wait
- 2yAlfath AhmedBusiness MemberReal Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votes
Quote from @Cecil Shannon:
Hello BP! I'm located in Shasta County CA and have been engulfed by the BP audiobooks, podcast and such! I don't have any investments yet mostly because my wife and I just got married and bought our primary residence. Wishing I had bought a duplex or really any piece of property straight out of high school for a jump start but here I stand.
I have had a hard time getting started and am anxious to get my first deal. I'm thinking of a BRRRR deal but having just bought the primary, probably wont be able to go with conventional financing anytime soon but maybe!
We have a decent amount saved up and have thought about doing a out of state deal but might be good to do a deal near me to start out.What do you all think? Think I should just wait it out or dive straight in? Any advise of what a beginner should do?
I recommend starting with a turkey or light-value add deal first for any novice or intermediate investor investing out of state. Some states are easier than others; however, it is important to understand the process and laws of owning properties in another foreign state.
Find your core-4: Realtor, Lender, GC, and PM. Once those guys are in place and you have a go-to title company that your realtor recommends and a lawyer. You are all set to begin your search.
I work with a lot of out-of-state investors that like investing in Columbus because it is an investor-friendly state and properties have good cash flow and stronger appreciation.
ReafCo | Ahmed Group 533 Reviews - Member since 2023 · 14 posts · 13 votes2y
Quote from @Remington Lyman:
Quote from @Cecil Shannon:
Hello BP! I'm located in Shasta County CA and have been engulfed by the BP audiobooks, podcast and such! I don't have any investments yet mostly because my wife and I just got married and bought our primary residence. Wishing I had bought a duplex or really any piece of property straight out of high school for a jump start but here I stand.
I have had a hard time getting started and am anxious to get my first deal. I'm thinking of a BRRRR deal but having just bought the primary, probably wont be able to go with conventional financing anytime soon but maybe!
We have a decent amount saved up and have thought about doing a out of state deal but might be good to do a deal near me to start out.What do you all think? Think I should just wait it out or dive straight in? Any advise of what a beginner should do?
Welcome to BP! I would dive straight in. I started investing in 2017 in Ohio and I am happy I did not wait
Thanks! Im just worried about getting over extended. I know about some financing options that i could use and need to learn more about my local market just am scared of risk!
- Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes2y
Quote from @Cecil Shannon:
Hello BP! I'm located in Shasta County CA and have been engulfed by the BP audiobooks, podcast and such! I don't have any investments yet mostly because my wife and I just got married and bought our primary residence. Wishing I had bought a duplex or really any piece of property straight out of high school for a jump start but here I stand.
I have had a hard time getting started and am anxious to get my first deal. I'm thinking of a BRRRR deal but having just bought the primary, probably wont be able to go with conventional financing anytime soon but maybe!
We have a decent amount saved up and have thought about doing a out of state deal but might be good to do a deal near me to start out.What do you all think? Think I should just wait it out or dive straight in? Any advise of what a beginner should do?
Hey Cecil, if you're anxious about getting started, I would likely recommend starting off with something more turn-key and then doing a BRRRR for your second deal once you establish your systems and get a good team in place.
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